Government Announces Subsidies for Rural Airline Service to Expire as Early as This Weekend
Federal officials has announced that financial support from a federal initiative that subsidizes airline routes to rural airports are scheduled to end as soon as Sunday due to the current federal funding lapse.
Federal transportation authorities stated that financial assistance under the Essential Air Service initiative are expected to expire as soon as Sunday after the department transferred separate financial resources from the Federal Aviation Administration as an temporary measure.
The department is in the process of alerting airline operators about the financial gap and alerting communities about possible impacts.
The government allocates approximately $350 million in yearly financial support for the program.
Earlier this year, the administration proposed cutting financial support by $308m for the Essential Air Service, which has support among Republican lawmakers because it provides services to rural, largely Republican areas.
During the initial term of the former president, the White House suggested terminating the Essential Air Service initiative – but Congress chose to boost funding instead.
The program typically subsidizes two return flights daily using 30- to 50-seat aircraft – or additional frequencies with smaller planes. Officials report that under the program, approximately 65 areas in Alaska receive service and 112 locations across the remaining states and Puerto Rico that likely wouldn't have any airline service.
“All states across the country will feel the effects,” the transportation chief stated during a media briefing, observing the program had bipartisan support. “We lack the funding for that initiative going forward.”